Page 56 - Mansfieldr FY20 Approved Budget

The Strategic Plan includes revenues and expenditures for a period of ten years. The
objective of the forecast is simply to measure or guide the allowance of costs. Over the
ten year forecast, revenues and expenditures are projected to increase considerably as the
population is expected to increase almost 30% over the next decade. The City’s economy
is influenced some by the national economy, but is more influenced by its population
growth and its economic development programs. Since the 1980 census, the City’s
population has increased by more than 67,000 residents. During this time period, the
national economy has moved through many economic cycles including the Great
Recession, yet the City’s population has continued to grow because of its location in
North Texas. Growth over the next decade is expected to be more of a modest pace of
growth in the population and the number of new businesses moving into the community.

In forecasting revenues and expenses for the City’s General Fund and Water, Sewer Fund
into the future, Management projects revenue trends to average in a range of 5% to 9%
over the next ten years with expenses being controlled or managed to approximately 7%
over the next ten years. The City could experience higher cost of operations because of
the effects of federal monetary policy, rising interest rates, energy prices, commodity
prices, labor markets, costs of raw water, and the costs of treating sewer water. Current
spending patterns suggest that minimum costs could increase 5% year over year, but
these spending patterns are extremely subject to economic variables that could easily
adjust the trajectory of presently projected spending pattern. Detailed projections by
revenue source and spending purposes are provided in following tables.

Key Rates

Tax Rate projections over the next ten years predict the tax rate to remain constant or at
its current rate of $.71 cents per $100 in assessed valuation of property within the City of
Mansfield, Texas, subject to legislative action. Water and Sewer rates are expected to
remain constant over the next ten years with the exception of modest rate increases year
over year. Modest increases are expected to pay for the significant cost increases being
passed along to the City for the cost of delivering raw water to the City’s water treatment
facilities and the cost of treating the City’s sewer water. The City is closely monitoring
these rate increases that are being charged by Tarrant Regional Water District and Trinity
River Authority to the City for their capital improvement programs. These rates may or
may not increase depending upon the costs being passed along to the City’s customers.

Current Economy, Future Economy

The City has increased service expectations as it has adjusted service programs to meet
the current demand for services. Department heads have submitted and requested funding
that is well beyond the City’s ability to fund the requesting funding. In an effort to
maintain existing services, the City has significantly reduced future spending
expectations because of the uncertainty in the national and global economies. All the
while, the City is seeing continued growth in its residential, commercial, and industrial
sectors of its economy and employment percentages are healthy and expected to remain
healthy in the City. The State of Texas employment percentages continue to fluctuate as

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